Cryptocurrency

Sergey Shvetsov: “buying crypto assets is not an investment, but a game of roulette”

The Deputy Chairman of the Bank of Russia Sergey Shvetsov compared the purchase of cryptoassets with a financial pyramid or playing roulette and said that the Central Bank of the Russian Federation does not consider this an investment.

According to Prime, Sergey Shvetsov criticized investments in crypto assets during a live broadcast on the new law on categories of retail investors. The Deputy Chairman of the Bank of Russia said that the classic crypto asset “does not carry any obligations”, and its value is determined by supply and demand.

In this regard, the Central Bank of the Russian Federation is of the opinion that cryptocurrency is “the most risky instrument, both in terms of the characteristics of its volatility and in terms of the prospects for its functioning.” Therefore, the purchase of cryptocurrencies is viewed by the Bank of Russia not as an investment, but rather as a financial pyramid or a game of roulette, noted Sergey Shvetsov.

He also said that central banks around the world are suspicious of “surrogate money.” At the same time, the Constitution of the Russian Federation directly prohibits them, and the law provides for criminal liability for the use of such money in payments.

“The Bank of Russia, as a regulator, adheres to the position that the acquisition of cryptocurrencies is not an investment. It is more like a financial pyramid or a game of roulette, but this does not apply to the financial market and should not be encouraged both by the state and by financial intermediaries for citizens to acquire cryptocurrencies, “Shvetsov said.

The Deputy Chairman of the Central Bank of the Russian Federation also said that crypto assets are used to “bypass the regulation in the field of combating the laundering of proceeds from crime.” In this regard, the Bank of Russia categorically does not support citizens’ investments in this “criminal sector”.

Sergey Shvetsov commented on the recently adopted by the State Duma in the third reading a bill on digital financial assets, which will allow transactions with such assets from next year. He said that digital financial assets can be considered a form of asset storage rather than some new entity.

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